Latest News | Hope MHRIL Can Sell Vacation Ownerships to Foreigners for Holidaying in India in Future: Arun Nanda

New Delhi, Jul 25 (PTI) Mahindra Holidays & Resorts India Ltd's retiring Chairman Arun Nanda hopes that in the near future, the company will be able to sell vacation ownerships to foreigners for holidaying in India, as the country occupies more mind space in the developed world, which is likely to boost inward tourism.

Nanda (74), who has been the chairman of Mahindra Holidays & Resorts India Ltd (MHRIL) since its inception in 1996, is hanging up his boots, passing on the baton to CP Gurnani, who will become the new chairman of the company from July 26, 2023.

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"The growth of the nation, particularly the increase in disposable income, has definitely played a very important role in the growth of Club Mahindra, and I am seeing the trend to continue," Nanda told PTI.

He was responding to a query on how much the growth of India has helped in the rise of the company.

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He further said, "One big opportunity that I see is that as India occupies more mind space in the developed world, we will see a boost in inward tourism. Today, we primarily sell our memberships in India and to the NRIs through our various offices abroad. But I am hoping that one day, in the near future, our management will sell vacation ownerships to foreigners for holidaying in India".

Nanda, a chartered accountant and lawyer by qualification, who credited the late Keshub Mahindra and Mahindra group Chairman Anand Mahindra for the support provided and transition him from an Accountant cum Company Secretary to an "Intrapreneur", said he is leaving with a sense of satisfaction of what the company has achieved in the last 26 years.

Recollecting how the uncle-nephew duo of late Keshub and Anand Mahindra were very keen about the group moving from a manufacturing conglomerate to a diversified entity by investing in the services business, he said, "Hospitality was one of the industries identified".

The group first looked at conventional hotels but realised it was a capital-intensive business, which may not be available, given the requirement for a huge capital infusion in the traditional auto and tractor business, he noted.

"That is how the idea of vacation ownership was thought of and I am very proud of the fact that with a humble beginning in September 1996, with the opening of our first resort in Munnar in Kerala in 1998, today we have 102 resorts, and the room inventory is in excess of 5,000," Nanda said.

In his last address as Chairman to the shareholders at the company's AGM on Tuesday, Nanda said, "The fact that I am leaving the company at a time when it has delivered the best-ever results with a potential for even higher growth, thanks to a strong management team, reinforces my confidence in the future of the company".

He further said, "Together with its Finnish subsidiary, Holiday Club Resorts (HCR), your company has over 3.4 lakh members and provides them access to 143 resorts in India, Asia, Europe and the USA. It is hence the largest vacation ownership company outside of the USA".

Bullish on the future of the MHRIL, Nanda said the company continues to achieve significant value increase in upgrades by existing members (71 per cent in F23), which to him is "the best endorsement of customer satisfaction".

"This will lead to, amongst others, higher spends by the members when at the resorts, increase in referral sales, thus reducing acquisition costs, and the ability to build larger resorts at new destinations (cost savings coupled with wider choices for the customer)," he said.

Nanda also noted that there is an increasing trend for extended family holidays and friends, "and there is no better place than Club Mahindra for fun-filled family holidays, both on account of our room configuration, facilities and the nature of activities".

However, he said, "Although I have pride in what we have achieved so far, but at the same time, I feel disappointed that we could not reach the milestone that I had set for myself before I step down".

"The time frame of achieving these milestones got extended due to Covid and then the geo-political situation, including the Russia-Ukraine war, which led to global inflation, increase in interest rates and reduction of travel. But this, I am sure, your management will more than make up," Nanda said.

Besides being the Chairman of MHRIL, Nanda has been a key member of the leadership of the Mahindra group and is retiring after 50 years of service.

He joined the Mahindra group as a young accountant in then Calcutta in 1973. In 1976, he moved to Pune to take over as CFO and Company Secretary of Mahindra Sintered Products.

In 1986, he was transferred to the parent company to take over as the Company Secretary and Head Legal, among other positions.

Nanda also served as Executive Director Mahindra & Mahindra Ltd from August 28, 1992, to March 31, 2010, and subsequently as Non-Executive Director till August 8, 2014.

During his career with the Mahindra Group, he ran a diverse set of businesses, with his most significant achievements include the conglomerate's diversification into leisure and hospitality, and the pioneering work he did in setting up Mahindra World Cities in Chennai and Jaipur.

Post-retirement, Nanda said, "I want to spend the rest of my life to fulfil my inner calling to work in the Social Sector, which will include working with senior citizens and skilling of youth in the tribal areas".

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)